In an organisation formal organisation is followed strictly where the employees have to work as per the directions only. The employees are performing under pressure. In your view, what changes are required in this company?

(i) Fearful environment will decrease production.

(ii) Increased feeling of insecurity.

(iii) Pressure will create stress among employees.

(iv) Delay in work.

Functional structure refers to the division of the whole enterprise according to the major functions to be performed by it. This is the simplest and the most prevalent form of organizational structure. Under this all the functions of similar nature are divided in different units which are called departments. Its disadvantages are:

1. Ignorance of organizational objectives: Each departmental head will work according to his sweet will. They always give more importance to their department objectives. Hence organisational objectives suffer.
2. Difficulty in interdepartmental coordination: All departmental heads may work as per their own wish. No doubt this facilitates coordination within the department but it makes interdepartmental coordination difficult.
3. Conflict of interest: Every departmental head wants to become a functional empire. To satisfy their ego, everyone demands maximum resources in their department. This situation leads to conflicts among different departmental heads.
4. Hurdle incomplete development: This system is a hurdle in the way of the complete development of the employees. Each employee specializes only in a small part of the whole job.

1. Organizing and Principles of Management.
2. Here the Unity of command is being violated.
3. The check on theAdministrative Expenses can be exercised by reducing the number of departments. This concept is known as ‘Departmentalization’.
4. It is related to the Organizing Function of Management.

Importance of Decentralization are:

1. Develops initiative among subordinates: When lower managerial levels are given freedom to take their own decisions they learn to depend on their own judgment and develop solutions for the various problems they encounter. So, decentralization policy helps to identify those executives who have the necessary potential to become dynamic leaders.
   (2) Develops managerial talent for the future: Decentralisation gives the subordinates with skills a chance to prove their abilities and creates a reservoir of qualified manpower that can be considered to fill up more challenging positions through promotions.
   (3) Quick decision making: In a decentralized organization, decisions are taken at levels which are nearest to the points of action and there is no requirement for approval from many levels. So, more accurate and faster decisions can be taken as the subordinates are well aware of the realities of situations.
   (4) Relief to top management: Decentralisation leaves the top management with more time which they can devote to important policy decisions as they decentralize authority for routine operational problems. Further decentralisation diminishes the amount of direct supervision exercised by a superior over the activities of a subordinate because they are given the freedom to act.

1. Decentralization.
2. (i) This reduces the workload of the top management.
   (ii) Decisions can be taken very soon when the authority is given to all the concerned managers.
3. (i) Women Empowerment.
   (ii) Feelings of equality.